Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
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Question
Chapter 14, Problem 14.13Q
To determine
Long-term debt
Long-term liabilities are obligations that the company needs to pay after at least one year or more. Long term liabilities are otherwise called as long-term debt. Examples of long-term liabilities are long-term bonds, long-term notes payable mortgage payable and more.
To explain: The additional disclosures to be made in connection with long term debt.
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Students have asked these similar questions
Where is debt callable by the creditor reported on the debtor's financial statements?
a) Long term liability
b) Current liability if the creditor intends to call the debt within the year , otherwise a long term liability.
c) Current liability if it is probable that creditor will call the debt within the year, otherwise a long term liability.
d) current liability
What is the effective interest rate of a bond or other debt instrument measured at amortized cost?
Select the correct response:
The interest rate currently charged by the entity or by others for similar debt instruments (i.e., similar remaining maturity,
cash flow pattern, currency, credit risk, collateral, and interest basis).
The interest rate that exactly discounts estimated future cash payments or receipts through the expected life of the debt
instrument or, when appropriate, a shorter period to the net carrying amount of the instrument.
The basic, risk-free interest rate that is derived from observable government bond prices
The stated coupon rate of the debt instrument.
Which of the following statements is true?
a. If any portion of a non-current liability is to be paid in the next year, the entire debt should be classified as a current liability.
b. "Current maturities of non-current debt” refers to the amount of interest on notes payable that must be paid in the current year.
c. Even though current and non-current debt must be shown separately on the statement of financial position, it is not necessary to prepare a journal entry to recognize this.
d. A non- current liability is an obligation that is expected to be paid within one year.
Chapter 14 Solutions
Intermediate Accounting, 10 Ed
Ch. 14 - How is periodic interest determined for...Ch. 14 - As a general rule, how should long-term...Ch. 14 - How are bonds and notes the same? How do they...Ch. 14 - What information is contained in a bond indenture?...Ch. 14 - How is the price determined for a bond (or bond...Ch. 14 - A zero-coupon bond pays no interest. Explain.Ch. 14 - Prob. 14.8QCh. 14 - Compare the two commonly used methods of...Ch. 14 - Prob. 14.10QCh. 14 - When a notes stated rate of interest is...
Ch. 14 - How does an installment note differ from a note...Ch. 14 - Prob. 14.13QCh. 14 - Prob. 14.14QCh. 14 - Air Supply issued 6 million of 9%, 10-year...Ch. 14 - Both convertible bonds and bonds issued with...Ch. 14 - Prob. 14.17QCh. 14 - Cordova Tools has bonds outstanding during a year...Ch. 14 - If a company prepares its financial statements...Ch. 14 - (Based on Appendix 14A) Why will bonds always sell...Ch. 14 - Prob. 14.21QCh. 14 - Prob. 14.22QCh. 14 - Prob. 14.23QCh. 14 - Bank loan; accrued interest LO132 On October 1,...Ch. 14 - Non-interest-bearing note; accrued interest LO132...Ch. 14 - Determining the price of bonds LO142 A company...Ch. 14 - Determining the price of bonds LO142 A company...Ch. 14 - Effective interest on bonds LO142 On January 1, a...Ch. 14 - Effective interest on bonds LO142 On January 1, a...Ch. 14 - Straight-line interest on bonds LO142 On January...Ch. 14 - Investment in bonds LO142 On January 1, a company...Ch. 14 - Note with unrealistic interest rate LO143 On...Ch. 14 - Installment note LO143 On January 1, a company...Ch. 14 - Prob. 14.12BECh. 14 - Bonds with detachable warrants LO145 Hoffman...Ch. 14 - Convertible bonds LO145 Hoffman Corporation...Ch. 14 - Prob. 14.22ECh. 14 - Prob. 14.36ECh. 14 - Prob. 14.14PCh. 14 - Prob. 14.17PCh. 14 - Prob. 14.21PCh. 14 - Prob. 14.3DMP
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